Accountancy Times: CICTAR and TJN-Australia tell inquiry that separation of audit and advisory is critical for improving standards

The Accountancy Times has reported on a submission by CICTAR and Tax Justice Network-Australia to a Government inquiry into the audit industry.

Our submission stated that provision of audit and non-audit services to the same client can raise independence concerns and should be restricted.

Accountancy Times notes that ‘In a recent response to the PJC inquiry into the audit, assurance and consulting industry, the joint submission said that where a firm provides advisory services and auditing, it should be prohibited from being able to audit an entity that it has provided other advisory services to’

It quotes the submission:

“That would include where advisory services have been provided by a related international partnership. For example, if PwC Luxembourg provided tax advice to a corporation, then PwC Australia should not be permitted to audit the corporation,”